Visa prepaid card customers will soon be able to deposit paper checks to their Visa cards simply by taking a picture with their mobile device. Visa’s new partnership with Chexar will unite traditional payment services like paper checks with innovative mobile solutions.
The service will available to Visa customers late 2012 and will allow them to deposit checks, transfer funds between Direct Deposit Accounts and payment cards, P2P payments and bill payments online, in person, on mobile devices or at ATMs. Transactions originate and terminate with a financial institution partner and consumer funds sit within an FDIC-insured account. As consumers move between devices and deposit channels, their prepaid account now moves seamlessly with them and works reliably from any device. Chexar predicts that 11 percent (770 million) of consumer checks will be deposited using a mobile device by 2016.
“Consumers are choosing reloadable prepaid cards at an increasing rate, and for many of the same reasons that consumers embrace other electronic payment options — security, convenience and reliability,” said Hyung Choi, head of U.S. Prepaid, Visa Inc. “Mobile technology and other payment innovations are enabling us to enhance Visa’s prepaid experience and bring all the conveniences of traditional banking options to consumers who choose to use prepaid.”
Visa’s new payment solution could allow many unbanked to perform traditional banking operations without actually having to open a bank account.